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The Middle East & Africa Market to whizz at a value CAGR of 12%: Bonafide Research
Oct, 01
2021

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The Middle East & Africa Market to whizz at a value CAGR of 12%: Bonafide Research

 

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Although oil still constitutes the main source of national revenue in the Middle East, new renewable energy, economic and energy diversification, concerns about climate change, and support for sustainable growth are now driving the market for electric bicycles in the oil-rich Arab countries. Middle Eastern countries are attracted to the luxurious automobile and their passion for speed. However, with the incline in the environmental concerns and the fuel price rise, the region is slowly shifting towards electric bicycles & e-bikes. The recent publication of Bonafide Research titled 'Middle East & Africa Electric Bicycle (E-Bikes) Market Outlook, 2026' identifies and discusses the developments in electric mobility across the region, with not only facts and figures but also has a detailed study about the forecasts on the electric bicycle industry.

The regional market growth can be attributed to the high adoption of electric bikes in the tech-savvy hubs of the gulf like Dubai. In Africa, the incline in the disposable income of the population is the most significant reason for the market growth. With the rising per capita income, the monetary constraint is no longer an issue for most people. The region is to be inclined towards the throttle electric bike segment, which is likely to be growing with an anticipated volume CAGR of 15.20%, through the forecasted period.

The major trend in the region is the inclination towards speed rather than price. This is pushing the manufactures to introduce models which are low in fuel consumption and are a luxury in terms of looks. Even though the use of electric bikes is higher in city/urban travel, the segment of cargo use is expected to incline in the coming period. The cargo segment is expected to be growing with an anticipated CAGR of 14.75% in the coming period.

One of the major constraints in the market is the lack of charging stations, especially in Africa. The market is in its initial stages in the Middle East countries but is believed that will have a good share in the global industry in the next few years, especially in the UAE. The food delivery market in the UAE has grown tremendously in the recent past and now the companies are turning towards electric bicycles for delivery. This does not only allow the companies to cut on their costs but also allows the market to grow. In terms of class, the Class 3 Speed Pedelec segment is expected to be the fastest-growing segment with an anticipated CAGR of more than 17%.

Many local governments have already started with their efforts to reduce the carbon footprints, which have pushed them towards promoting green mobility. For countries like Africa, it is the need of the hour to opt for the use of alternate energy in transportation in order to reduce their fuel subsidy burden. The country contributed to be the least share to the regional market in the initial years of 2015. In South Africa, the key issue is the high import duties imposed on the vehicles. Even with all the policies in place, the South African electric bicycle market is nowhere close to other markets, which are now appreciating additional features of these vehicles. Even as the overall cost of electric vehicles is falling with the decrease in the battery price, the price of the electric vehicle remained high in the region when compared to internal combustion vehicles.